Using UPI or PayTM or Mobikwik has become a second nature for us Indians. Buying groceries, paying for OLA cab, making online bill payments, buying on Amazon or Flipkart, digital payments are becoming the preferred mode of payments due to the availability and ease of use. Even the Government of India is trying to persuade more and more citizens to start using digital payments. ‘Digital India’ campaign is a living proof of the seriousness government has shown to help the economy become Cashless. With a country like ours where over 25 billion transactions happen real-time, Banks and regulators have joined hands with the government to make it possible.
So, what is a digital payment?
A digital payment is the payment made through a digital channel using devices like mobile phones, computers and internet and POS (Point of Sales). There are various types and modes of digital payments. Common examples are debit/credit cards, internet banking, mobile wallets, digital payment apps like PayTM or Mobikwik, Unified Payments Interface (UPI) service, mobile banking, etc.
Why use digital payments?
Digital payment methods are easy to use, convenient, offer flexibility and can be used anywhere and at anytime. No need to carry cash in your pocket, use a mobile app wallets, UPI or cards to make the payments. Today, even the smallest shop owners and merchants accept payments through a digital mode.
We have listed down a few benefits of the digital payment modes. These benefits are:
- Easy, fast, and convenient: the biggest advantage of cashless payments is the speed of the payment process. No need to withdraw cash from an ATM, no need to carry cash and no hassle of carrying a wallet in your pocket. All you need is your mobile phone. You can make a payment anywhere and at any time. A few examples of such services are digital wallets & UPI.
- Economical: We have payment apps and mobile wallets that do not charge a service or processing fee for the service provided. The UPI interface is one such example, where services can be utilized by the customer free of cost. Various digital payments systems are bringing down costs.
- Discounts, waivers, and cashbacks: Digital payment apps and mobile wallets offer many rewards and discounts offered to customers. This motivates the customers to use cashless mode more often.
- Digital record of transactions: Another benefit of a digital payment mode is the availability of the transaction records, at all times.
- One stop solution for paying bills: Many digital wallets and payment apps have become a convenient platform for paying utility bills. Be it mobile phone bills, internet or electricity bills, all such utility bills can be paid through a single app without any hassle.
- Helps keep black money under control: Digital transactions help the government keep a track of things and eliminates the circulation of black money and counterfeit currency notes in the long run. It also boosts the economy as the cost of minting currency also goes down.
Digital payments have gained popularity in India and there are many apps that are being launched in this sector. It has become a hassle-free and secure way to make payments and this is one of the main reasons why more and more customers are choosing to adopt digital payment modes.